Brazilian oil company Petrobras is re-evaluating a preliminary agreement with the China National Petroleum Corporation (CNPC) to build a refinery in the state of Rio de Janeiro, financial newspaper Valor Econômico reported.

In October 2018 Petrobras signed an agreement with China National Oil and Gas Exploration and Development Corporation (CNODC), a subsidiary of CNPC, to carry out an economic feasibility study to build the Rio de Janeiro Petrochemical Complex (Comperj).

When this study was completed, the two companies wanted to form a partnership, in which Petrobras would have an 80% stake and CNPC the remaining 20% to build and operate the refinery.

The Brazilian newspaper also reported that the partnership for the construction of a partnership is out of line with the ideas of the new CEO, Roberto Castello Branco, who has been pressing for the company to carry out a divestment process, namely in oil refining.

The Brazilian oil company is involved in an ambitious divestment programme aimed at reducing the company’s high level of debt, which is expected to have fallen to US$69 billion in 2018 from US$85 billion in 2017.